Strategies for Giving Back and Contributing Financially in Your Golden Years

In retirement, many individuals seek meaningful ways to contribute to their communities. Volunteering and charitable giving can not only provide a sense of purpose but also offer financial benefits. Here's a roundup of some key points to consider.

The Financial Advantages of Volunteering and Charitable Giving

Donor-Advised Funds and Qualified Charitable Distributions (QCDs)

Donor-advised funds allow you to make a charitable contribution now, take the deduction on your tax return, and decide later which charities to support. Once you turn 70½, QCDs will count toward your required minimum distribution, and they will be excluded from your adjusted gross income, potentially shielding you from certain taxes and surcharges.

Tax Deductions for Out-of-Pocket Costs

While the IRS does not allow the deduction of the time spent volunteering, out-of-pocket costs associated with charitable work can be deducted if one itemizes on their tax return. This includes the cost of gas, tolls, and parking, as well as the cost of transporting dogs for a rescue organization. The IRS flat rate for mileage deduction is 14 cents, but tracking actual expenses may result in a larger deduction.

Volunteering to Utilize Professional Skills

Some volunteers may find it beneficial to volunteer for an organization that will benefit from their professional skills. For instance, a friend of the author has a background in health care and volunteers for the State Health Insurance Assistance Program.

The Washington Post Profile: Jon Merryman

The Washington Post recently profiled a man named Jon Merryman from Baltimore County, Md., who has made a significant impact through his charitable work. Since 2013, Merryman has retrieved an estimated 15,000 illegally abandoned tires, with the goal of picking up tires in every county in the U.S. The average tire weighs approximately 25 pounds, suggesting that Merryman stays physically active.

The Health Benefits of Volunteering in Retirement

Regular volunteering in older age is associated with a reduced likelihood of suffering from age-related health problems and cognitive decline. This makes volunteering not only a rewarding way to give back but also a proactive step towards maintaining one's health.

Local Initiatives and the Author's Involvement

The author has announced his participation as a volunteer for the organization "Freie Wähler Schriesheim," a non-partisan association that offers the opportunity to actively support local politics and initiatives such as tree planting and caretaking of urban green spaces. Another friend of the author, a longtime journalist, is helping high school students publish a local newspaper.

In conclusion, volunteering and charitable giving offer numerous benefits, both personally and financially. Whether you choose to participate in a local initiative, donate to a cause close to your heart, or start a project of your own, the impact you can make is significant.